ECCB 2020-2021 Annual Report and Statement of Accounts

AREAS OF FOCUS

A new quarterly reporting form (Anti-Money Laundering), as well as a revised annual reporting form (Appraisal Log) will be implemented during the period. Existing forms would be further revised to allow report- ing of the Eastern Central Bank DCash, the digital version of the Eastern Caribbean currency. During the new financial year, other Licensed Financial Institutions will be on boarded with respect to their use of the Bank’s Statistical Enterprise Solution to upload data and access various indicators. ECCB hopes to expand its datasets to also capture data from other institutions such as the Eastern Caribbean Automated Clearing House (ECACH) and the Caribbean Credit Card Corporation (4Cs). Payment Systems Improvements And Financial Inclusion 1. During the 2021/2022 financial year, through its engagement with regional and international partners, the Bank will pursue opportunities for collaboration to increase access to finance and financial inclusion. 2. The Bank will advance revisions to the payment system regulatory framework inclusive of a revised Payment System and Settlements Act to enhance the regulatory framework for payment services in the ECCU, strengthen consumer protection and foster greater confidence in the use of electronic payments, reflecting the ECCB’s shift towards regulation that is modular and facilitative of growth and development in the ECCU payments landscape. Draft legislation will be developed during the 2021/2022 financial year and consultations will be conducted with stakeholders on the legislation. 3. In the 2021/2022 financial year, data protection legislation will be developed to complement the payment system reforms. Accordingly, work will continue on the development of a robust legislative data pro- tection framework in the ECCU that is reflective of the modalities of a new digital era with particular focus on the mechanisms in which data is created and managed, ensuring transparency in the collection and use of data, preserving data subjects’ rights and engendering public trust and confidence in the system. 4. Efforts to develop and modernise the payment system in the ECCU will continue with the focus on producing a new Payment System and Services Act to be accompanied by relevant Regulations. In addition, new Data Protection legislation for the region will be pursued as it is considered integral to a payment system that will be highly digital/electronic in its orientation. 5. The Bank will move to engage technical experts in the design and modernisation of payments infrastructure that will auger well for the advancement of the payment system in the ECCU. It is expected that increased dialogue with key stakeholder groups in the payment system landscape, including participants in both the retail and large value payments space will enhance the process. 6. Further engagements and capacity building will be undertaken to strengthen the operations of Financial Market Infrastructures that are integral to the clearing and settlement functions in the ECCU. Such in- terventions will aid in the completion of the PFMI self-assessments and the observance of the Principles of the payment system. 7. Updated survey techniques will be used to explore the extent of financial inclusion and usage of payment infrastructures and products and services. The data gathered will be used to inform policy decisions. 8. Finally, a holistic payment System Reform strategy will be developed for the region that will be informed by the Payment System Vision and Modernisation Plan. 9. In the upcoming financial period, the Bank will advance the rollout of DCash in the original four (4) pilot countries and launch DCash in the remaining four (4) territories. A target date of September 2021 has been set to have DCash available for transacting in all eight (8) ECCU member countries. This would be supported by a comprehensive marketing campaign. 10.Project activities during the period would also include data gathering and analysis, product refinement and enhancement and overall project assessment towards full commercialisation of DCash. Organisational Effectiveness And Development The Bank will complete the recruitment of a Change Management Specialist and establish the necessary framework to guide the institution as it undergoes this period of rapid and massive change. The ECCB will also continue to strengthen its engagement with citizens and stakeholders through its Digital Dialogues and ECCB Blog: Insights Towards Recovery, Resilience and Socio-economic Transformation Blog platforms. As the Bank strives to improve its operations and become more aligned with international best practices, over the 2021/2022 financial year, there will be some strategic operational audit reviews. These will include an audit review of the Fintech Pilot project, with a focus on Cyber-related risks, an IT Governance review and a Risk Management audit, neither of which has been conducted in the past. Additionally, as the Bank transitions into a more technology-dependent organisation, an ethics and culture review will be conducted to ensure that the changes being made on these levels contribute positively to the Bank’s human resources.

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EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2020/2021